As a result of the federal government’s clear directives against Diversity, Equity, and Inclusion that put the Disadvantaged Business Enterprise (“DBE”), 8(a) Business Development Program, Woman-Owned Small Business (“WOSB”), and Veteran-Owned Small Business (“VOSB”) at peril, this is the first in a series of blogs that will discuss alternative, non-federal government certifications available to businesses.
Minority Business Enterprise (“MBE”) certification through the National Minority Supplier Development Council (“NMSDC”) or one of its affiliates is one such certification available to businesses. The business must be at least 51% owned and controlled by a U.S. citizen who is at least 25% Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American (a tribal card and a blood degree certificate are required for Native American certifications).
In recent years, NMSDC has created two other certifications to apply to minority-owned companies that have taken on investment capital to grow their business, which may result in the business no longer meeting the strict requirements for MBE certification. These certifications, Minority Controlled Company (“MCC”) and Minority Publicly Controlled Company (“MPC”) take into consideration the strings that are often attached to taking on outside investments to grow the company. NMSDC has also created an Investment Fund Company (“IFC”) certification for minority-owned investment funds that are helping minority-owned businesses scale.
The application process is remarkably similar to other certifications. You will have to complete the application and provide an extensive list of documents to show that the minority individual(s) owns and controls the business, provide references, and meet with a representative for an interview either as a site visit or virtually.
MBE, MCC, and MPC certifications are useful for those seeking to contract with corporations and some local governments. They also provide numerous networking, matchmaking, and educational opportunities.
If you need assistance applying for a diverse or women-owned business certification, please contact Danielle Dietrich, Esq. at ddietrich@potomaclaw.com or 412-449-9141.
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